Sandfire Resources

A little over two years ago it looked like
Sandfire Resources
would end up as just another failed explorer, but after discovering one of the country’s most significant copper reserves stock in the company has soared. At the end of 2008 shares in Sandfire were trading at 8¢; now they change hands somewhere north of $8. The big question being asked by investors is how much further the stock can climb. UBS is predicting it will hit $8.90 over the next 12 months. However, it appears fund manager Colonial thinks now is a good time to take some profit, selling down part of its substantial holding in the company. Sandfire’s flagship project, Degrussa, is estimated to contain 643,000 tonnes of copper and 725,000 ounces of gold. The company recently raised $103 million to help accelerate the development of the project, which is expected to begin production at the end of this year. Separately, Sandfire has been touted as potential takeover target by market watchers with OZ Minerals holding a 17.5 per cent stake in the company.